The Environmental Kuznets Curve: A Structural Time Series Approach

The environmental Kuznets curve is the implied inverted-U relation between environmental degradation and economic growth.

The important policy implication of the shape of this curve is that if environmental degradation rises with economic growth, this provides justification for strict environmental regulation and putting limits on economic growth. This is the policy-response explanation for the negative relation between environmental regulation and economic growth. In this project, Imad Moosa estimates the environmental Kuznets curve for a number of countries using time series data and structural time series modelling to account for missing variables.